The Dolans' Dirty Dozen
How many pages long is the United States Tax Code? If you guessed 18,500, you win the prize. So, it's no wonder that so many of us make mistakes when filing our federal income tax forms. But a mistake or two on your tax return can bring you unnecessary stress, delay your refund or subject you to an appointment with an IRS agent.Avoid all that. Personal finance experts Ken & Daria Dolan show you how to steer clear of these frequent fouls.
How many pages long is the United States Tax Code? If you guessed 18,500, you win the prize. So, it's no wonder that so many of us make mistakes when filing our federal income tax forms. But a mistake or two on your tax return can bring you unnecessary stress, delay your refund or subject you to an appointment with an IRS agent.Avoid all that. Personal finance experts Ken & Daria Dolan show you how to steer clear of these frequent fouls.
No. 1: 2 + 2 = 5
Math mistakes are one of the leading reasons the IRS adjusts returns. We know this sounds basic, but please double-check all figures on your return and use a calculator!
Math mistakes are one of the leading reasons the IRS adjusts returns. We know this sounds basic, but please double-check all figures on your return and use a calculator!
No. 2: Incorrect Address
If you choose to file a paper return, be sure to use the address label off the tax return the IRS sent you. (You can make any necessary corrections right on that label).If you do not have a peel-off label, fill in all requested information in your very best writing so it's clear as can be. An incorrect address can lead to a delay in processing your return, or worse, IRS correspondence and refunds being sent to the wrong address.
If you choose to file a paper return, be sure to use the address label off the tax return the IRS sent you. (You can make any necessary corrections right on that label).If you do not have a peel-off label, fill in all requested information in your very best writing so it's clear as can be. An incorrect address can lead to a delay in processing your return, or worse, IRS correspondence and refunds being sent to the wrong address.
No. 3: Incorrect Filing Status
Check only one filing status on the tax return and check the appropriate exemption boxes. Claiming the wrong status could negate your ability to claim the child tax credit, the earned-income credit and dependent exemptions.
Check only one filing status on the tax return and check the appropriate exemption boxes. Claiming the wrong status could negate your ability to claim the child tax credit, the earned-income credit and dependent exemptions.
No. 4: Using the Wrong Tax Table
If you use the IRS tax tables, be careful to use the correct column for your filing status.
If you use the IRS tax tables, be careful to use the correct column for your filing status.
No. 5: Incorrect/Missing Social Security Number
The IRS computers will automatically reject your credits and deductions if your Social Security number is wrong.
The IRS computers will automatically reject your credits and deductions if your Social Security number is wrong.
No. 6: Direct Deposit Routing Errors
If you are asking the IRS to deposit your refund directly into your account, you must be sure you provide the right information. If your account number or routing number is off, your money will float forever between financial institutions!
If you are asking the IRS to deposit your refund directly into your account, you must be sure you provide the right information. If your account number or routing number is off, your money will float forever between financial institutions!
No. 7: Incomplete/Missing Documentation
A complete set of supporting documents is vital to the efficient processing of your return. If the IRS can't verify the information that you provide, it may decide to make its own adjustments! Attach all necessary forms and schedules (your W-2, 1099s, etc.) and, especially receipts that back up your deductions/credits to your return as well.
A complete set of supporting documents is vital to the efficient processing of your return. If the IRS can't verify the information that you provide, it may decide to make its own adjustments! Attach all necessary forms and schedules (your W-2, 1099s, etc.) and, especially receipts that back up your deductions/credits to your return as well.
No. 8: Failure to Include Payment
If you do owe money ... enclose a check or money order with your tax return and write your Social Security number, tax form number and tax year on the payment.
If you do owe money ... enclose a check or money order with your tax return and write your Social Security number, tax form number and tax year on the payment.
No. 9: Failure to Take Tax Credits and Deductions
Each year the IRS collects millions of dollars in overpaid taxes thanks to taxpayers who don't claim all the deductions and credits available to them whether they itemize or not.Such credits and deductions include child and dependent care expense, student loan expense, moving expenses, alimony paid and tuition expenses.
Each year the IRS collects millions of dollars in overpaid taxes thanks to taxpayers who don't claim all the deductions and credits available to them whether they itemize or not.Such credits and deductions include child and dependent care expense, student loan expense, moving expenses, alimony paid and tuition expenses.
No. 10: Sending the IRS Your Only Copy
Be sure to make a copy of your return and all documentation for your records in case you have to go into battle with the IRS.
Be sure to make a copy of your return and all documentation for your records in case you have to go into battle with the IRS.
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